Optician fined after tricking staff out of minimum wage

A scrooge optician who tricked his staff out of minimum wage payments has been fined and ordered to pay back what he owes them. Benjamin Gains, 28, of Hamble Croft in Radcliffe, near Bury, owns three shops in Liverpool as director of BG Opticians.

Benjamin Gains, 28, of Hamble Croft in Radcliffe, near Bury, owns three shops in Liverpool as director of BG Opticians.

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A scrooge optician who tricked his staff out of minimum wage payments has been fined and ordered to pay back what he owes them.

Benjamin Gains, 28, of Hamble Croft in Radcliffe, near Bury, owns three shops in Liverpool as director of BG Opticians.

Magistrates in Manchester were told that Gains employed staff and told them that they would be entitled to paid lunch breaks at a certain rate.

A clause in their contracts confirmed the payments – but four members of staff, three women and a man, were not paid the sums they were entitled to, the court heard.

It is the first successful prosecution of its kind in the north west and only the seventh nationally.

David Pojur, prosecuting on behalf of HM Revenue and Customs, said an investigation was launched in May 2008 after one of the four complained to the National Minimum Wage Officer, who subsequently asked to view the contracts. The court was told that Gains then asked for the contracts back and amended them by removing the clause to 'deceive' the investigating officer.

Mr Pojur said he also falsified letters of employment.

The court was told that one woman missed out on payments worth £1,194 over nine months. A second was tricked out of £29 over a month, a third out of £373 over five months and the final male employee out of £26 over a month. The total Gains should have paid them was £1,623.

He admitted six charges under the National Minimum Wage Act and was ordered to pay back the total sum he should have paid them. He was also fined a total of £1,238 and ordered to pay costs of £820.

The court heard Gains said he would refund all the staff within 28 days.

Michael Rainford said the difference between what the employees were paid to what they should have been paid amounted to 'pence'. He said: “In respect of all of them it is not where the employee is being paid a very, very miserly amount of money. They were very close to the minimum wage. The difference was pence.”

Mr Rainford added that 'severe financial pressures' led Gains to close one of his opticians shops.

None of the four involved in the action work for him any more. Mr Rainford added: “Through me he would like to apologise in relation to what has happened.”

William Durkin, chairman of the bench of magistrates, told Gains: “The legislation was brought in to protect employees. Giving people paid breaks makes them more productive. Hopefully you have learnt a lesson from this.”

Mike O’Grady, from HMRC Criminal Investigations department, said: “This sentencing sends a clear message to employers, large or small, that HMRC will actively pursue those whom we suspect of flouting National Minimum Wage law. If employers prevent HMRC officers from checking staff records, attempt to alter or falsify pay records and related documents and refuse to comply with the law they could receive a fine and a criminal record. We have a duty to ensure workers receive their salary entitlement. The majority of employers do assist us with our investigations, but if they don’t we will pursue cases through the criminal courts.”

The National Minimum Wage Act came into force in 1998. From October the main minimum wage rate for workers aged 21 and over will rise to £5.93 an hour.